A bout of volatility was witnessed as key benchmark indices trimmed gains after hitting fresh intraday high in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 40.58 points or 0.19%, off close to 60 points from the day's high and up about 40 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Gains in Asian stocks boosted supported gains on the domestic bourses.
Bank stocks edged higher on renewed buying. Cadila Healthcare rose after the company said it has received final approval from the USFDA to market Bupropion Hydrochloride Extended-release tablets USP (XL) in the strength of 300 mg in the United States. Tata Motors extended initial gains after the company on Monday, 20 January 2014, announced the launch of the REVOTRON Series -- the next generation petrol engine family that will power its future models in the passenger vehicle market.
The market edged higher in early trade on firm Asian stocks. The Sensex extended initial gains and hit fresh intraday high in morning trade. A bout of volatility was witnessed as key benchmark indices trimmed gains after hitting fresh intraday high in mid-morning trade.
The market sentiment was boosted by data showing that foreign funds were net buyers of Indian stocks on Monday, 20 January 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 384.89 crore on Monday, 20 January 2014, as per provisional data from the stock exchanges.
Asian stocks edged higher on Tuesday, 21 January 2014, as China's money-market rates dropped after the central bank pumped funds into the financial system.
At 11:20 IST, the S&P BSE Sensex was up 40.58 points or 0.19% to 21245.63. The index jumped 97.47 points at the day's high of 21,302.52 in mid-morning trade, its highest level since 16 January 2014. The index fell 0.23 points at the day's low of 21,204.82 in early trade.
The CNX Nifty was up 15.20 points or 0.24% to 6,319.15. The index hit a high of 6,330.30 in intraday trade, its highest level since 16 January 2014. The index hit a low of 6,304.50 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,188 shares gained and 836 shares fell. A total of 133 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks rose and rest fell. Maruti Suzuki India (up 1.98%), Tata Steel (up 1.59%) and L&T (up 1.2%) edged higher from the Sensex pack.
Tata Motors rose 2.95%. The company on Monday, 20 January 2014, announced the launch of the REVOTRON Series -- the next generation petrol engine family that will power its future models in the passenger vehicle market. The company unveiled the first petrol engine from its REVOTRON series - the Turbocharged Intercooled Multi-point Fuel Injected (MPFi) Petrol Engine, REVOTRON 1.2T. Tata Motors said that the REVOTRON Series has been designed based on extensive feedback from car owners, car enthusiasts and expert drivers from across the globe; observing their driving habits followed by extensive testing in gruelling climatic conditions in India as well as in countries like the UK and Korea.
The REVOTRON Series has been developed by Tata Motors with inputs from renowned global players in the area of combustion, boosting, friction and calibration, to deliver class-leading performance, the company said in a statement. Tata Motors also worked closely with global engine consultant AVL (Austria) and key technology partners like Bosch, Honeywell, Mahle and INA to bring in the latest technology for the new engine series. REVOTRON 1.2T has been tested for global standards along with a testing car by TEnergy of Korea to ensure that the engine performance is best-in-class, Tata Motors said. The engine has been manufactured to be light on weight and low on friction, delivering high performance and fuel economy. The REVOTRON series will include 3-and 4-cylinder petrol engines to offer superior performance as well as high fuel efficiency to our customers, Tata Motors said.
Announcing the launch, Mr. Ranjit Yadav, President, Passenger Vehicle Business Unit, Tata Motors said: "With the launch of REVOTRON 1.2T, Tata Motors passenger vehicles business is making a strategic shift towards a more complete portfolio. The name itself, an amalgamation of Revolution and the French word "tronel", meaning "balance", conveys the essence of this engine brand that uses key technological advances to revolutionize and balance great driving manoeuvrability, without compromising on power or fuel efficiency. We are enhancing our portfolio with the next generation petrol engines - REVOTRON series".
The REVOTRON 1.2T has been engineered to deliver optimum balance of power, performance and fuel economy, Tata Motors said. Developed using a range of eco-friendly and future-oriented technologies, the next-generation petrol engine incorporates latest know-how like multi-drive modes, allowing the best of economy and driving pleasure. The Advance Engine Management Systems (AMS) provides a digitally precise control for vehicle performance and emissions and offers the design of reciprocating components to ensure the best out of every drop of fuel. With enhanced customer benefits for the best driving experience, the REVOTRON series is therefore positioned to be a revolution in Performance, Refinement and Economy, the three pillars of the REVOTRON series, Tata Motors said.
Bank stocks edged higher on renewed buying. ICICI Bank rose 1.86%.
AXIS Bank rose 1.13%. AXIS Bank's net profit increased 19.06% to Rs 1604.11 crore on 9.94% increase in total income to Rs 9433.55 crore in Q3 December 2013 over Q3 December 2012. The result was announced on 16 January 2014.
The bank's gross non-performing assets increased to Rs 3008.20 crore as on 31 December 2013, from Rs 2734.47 crore as on 30 September 2013 and Rs 2275.30 crore as on 31 December 2012. The ratio of net non-performing assets to net advances stood at 0.42% as on 31 December 2013, compared with 0.37% as on 30 September 2013 and 0.33% as on 31 December 2012. The ratio of gross non-performing assets (NPA) to gross advances stood at 1.25% as on 31 December 2013, compared with 1.19% as on 30 September 2013 and 1.10% as on 31 December 2012.
Provisions and contingencies fell 47.65% to Rs 202.49 crore in 31 December 2013 over Q3 December 2012. Provisions and contingencies declined 70.54% on sequential basis
HDFC Bank gained 1.07%. The bank's net profit rose 25.1% to Rs 2325.70 crore on 17.75% growth in total income to Rs 12738.95 crore in Q3 December 2013 over Q3 December 2012. The bank announced Q3 results on 17 January 2014.
HDFC Bank's net interest income (NII) rose 16.4% to Rs 4634.80 crore in Q3 December 2013 over Q3 December 2012. The net interest margin or NIM declined to 4.2% in Q3 December 2013, from 4.3% in Q3 December 2012. HDFC Bank's's non-interest income rose 11.4% to Rs 2148.30 crore in Q3 December 2013 over Q3 December 2012.
With asset quality remaining stable during the quarter, provisions and contingencies declined 4% to Rs 388.80 crore in Q3 December 2013 over Q3 December 2012, HDFC Bank said.
Total deposits rose 22.9% YoY to Rs 349215 crore as on 31 December 2013. Adjusted for foreign currency non-resident (FCNR) deposits raised during the quarter, the total deposits growth rate would have been 15.5% and CASA ratio would be 43.7%, HDFC Bank said.
Advances grew 22.9% YoY to Rs 296742 crore as of 31 December 2013. The domestic loan growth was contributed by both retail and wholesale segments, with retail loans growing by 13.6% and wholesale loans by 22.1%, resulting in a domestic loan mix between retail and wholesale of 54:46. Total advances in overseas branches as of 31 December 2013 were at 8% of the total advances as against 3.8% as of 31 December 2012, HDFC Bank said.
The bank's Capital Adequacy Ratio (CAR) as at 31 December 2013 as per Basel III guidelines stood at 14.7%, as against a regulatory requirement of 9%. Of this, Tier-I CAR was 9.9%. These CAR ratios are based on net worth numbers which do not take into account the profits for nine months ended 31 December 2013. Had the same been included, the total CAR and Tier-I CAR would have been 16.2% and 11.5% respectively, HDFC Bank said.
But, Kotak Mahindra Bank fell 1.22% ahead of its Q3 result today, 21 January 2014.
Among PSU bank stocks, State Bank of India, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank rose 1.56% to 3.06%.
Canara Bank rose 3.13% after the bank said after market hours on Monday, 20 January 2014 that the board of directors of the bank at its meeting held on 20 January 2014 has approved the payment of interim dividend of Rs 6.50 per share or 65% for the year ending 31 March 2014 and permitted the payout date of dividend as 31 January 2014 (i.e., the date of dividend warrant would be 31 January 2014).
Federal Bank was up 1.57% at Rs 83.95. The Cabinet Committee on Economic Affairs on Monday, 20 January 2014, approved the proposal of Federal Bank for increase in foreign investment ceiling in the bank to 74% of the bank's equity, subject to the aggregate foreign institutional investors' (FIIs) shareholding not exceeding 49% of the paid up equity share capital of the bank. The approval would result in foreign investment of approximately Rs 1400 crore in the country, a government statement said.
It may be recalled that the Reserve Bank of India (RBI) had in August last year banned further purchases of shares of Federal Bank by FIIs after aggregate foreign share holding in the private sector bank crossed the overall limit of 49% of the bank's paid-up capital. Total FII holding in Federal Bank was 42.27% as on 31 December 2013
The Reserve Bank of India (RBI) on Monday, 20 January 2014, said it has constituted an Expert Committee to review governance of boards of commercial bank in India. The terms of reference of the committee include review of the regulatory compliance requirements of banks' boards in India. The committee will judge what can be rationalised and where requirements need to be enhanced. The committee will examine the working of banks' boards, including whether adequate time is devoted to issues of strategy, growth, governance and risk management. The committee will review central bank regulatory guidelines on bank ownership, ownership concentration and representation in the board.
The committee will analyse the representation on banks' boards to see whether the boards have the appropriate mix of capabilities and the necessary independence to govern the institution, and to investigate possible conflicts of interest in board representation, including among owner representatives and regulators. In this regard, the committee will also assess and review the 'fit and proper' criteria for all categories of directors of banks, including tenor of directorship and it will examine board compensation guidelines and any other issue relevant to the functioning of banks' boards and the governance they exercise.
The committee is expected to submit its report within three months from the date of its first meeting, the RBI said.
Cadila Healthcare rose 1.11%. The company said during market hours that it has received final approval from the USFDA to market Bupropion Hydrochloride Extended-release tablets USP (XL) in the strength of 300 mg in the United States. The drug falls in the anti-depressants segment. The estimated sales in 2013 in US as per IMS for Bupropion Hydrochloride Extended-release tablets USP (XL) in the strength of 300 mg was $255.9 million. The total market for Bupropion was estimated at $526.7 million.
Cadila Healthcare said that the group now has 87 approvals and has so far filed 216 ANDAs since the commencement of filing process in FY 2004.
Jet Airways (India) rose 2.17%. The company after trading hours on Monday, 20 January 2014, said it will launch a daily direct flight service from Mumbai to Paris with effect from 14 May 2014, subject to government approvals. This new flight from India's financial capital Mumbai, to Paris, the world's most popular tourist destination, will be operated by wide-body Airbus A330 aircraft, Jet Airways said.
Jet Airways flight 9W 124 will depart from Mumbai's brand new Chhatrapati Shivaji International Airport, T2 at 1200 hrs and arrive at Paris' Charles de Gaulle airport at 1750 hrs. The return flight 9W 123 will depart Paris at 2110 hrs (LT) and arrive Mumbai at 0945 hrs the following day thus providing a seamless connection to the airline's entire network within India. Moreover, the return Jet Airways flight from Paris to Mumbai will make it the only evening departure from continental Europe to Mumbai, Jet Airways said.
Paris will be the airline's twenty first international destination and will provide a key gateway point for travel to several destinations across Europe with Jet Airways' code share and interline partners, Jet Airways said.
To mark this important launch, Jet Airways has announced a special return Economy introductory fare of Rs 45,291 (including taxes) and return Premie introductory fare of Rs 1,53,315 (including taxes) for guests traveling from Mumbai to Paris. The regular fare on this sector would be: Economy Rs 62,040 and Premiere Rs 2,02,114 (inclusive of taxes). These fares available since 14 January 2014 have a travel validity commencing 14 May 2014. However, to avail of the attractive introductory fares, guests will need to book and purchase their tickets on or before 10 February 2014. In addition, JetPrivilege members can earn double miles on flights booked between 14 May and 13 June 2014.
Jet Airways will deploy an Airbus A330-200 aircraft on this route, with 18 Premiere seats that open up as flatbeds and 236 ergonomic Economy seats offering guests unmatched comfort. Guests traveling to Paris will experience the airline's famed in-flight service, its award-winning In-flight Entertainment (IFE) system, carefully selected menus offering a range of Indian and international options, along with the airline's warm and personalized hospitality, Jet Airways said.
Mr. Gaurang Shetty, Vice President Commercial, Jet Airways (India), said: "Jet Airways is delighted to launch its maiden service to Paris, one of the world's top destinations and a key gateway point for airline guests traveling travelling between India and France while they experience Jet Airways' hallmark in-flight service. By offering enhanced connections to several European cities from Paris with our code share partners, we are confident that this new flight would prove immensely popular with our guests. Furthermore, Jet Airways would be able to offer guests seamless travel between Europe and India, and onwards to SAARC destinations including Colombo, Dhaka and Kathmandu and vice versa."
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014. The RBI kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.
Asian stocks edged higher on Tuesday, 21 January 2014, as China's money-market rates dropped after the central bank pumped funds into the financial system. Key benchmark indices in China, Japan, Singapore, Hong Kong, Indonesia, and South Korea were up 0.33% to 1.18%. Taiwan's Taiwan Weighted fell 0.11%.
The People's Bank of China yesterday added funds and expanded access to a lending facility as rising demand for cash before the Lunar New Year drove the biggest jump in money-market rates in seven months. Small- and medium-sized Chinese banks will also be able to tap the PBOC's Standing Lending Facility for loans of up to two weeks on a trial basis after the seven-day repurchase rate, a gauge of interbank funding availability, jumped 153 basis points yesterday to 6.32%.
The Bank of Japan's two-day monetary policy meeting began today, 21 January 2014.
Trading in US index futures indicated that the Dow could advance 68 points at the opening bell on Tuesday, 21 January 2014. The US stock market was closed on Monday, 20 January 2014, for a holiday commemorating civil rights leader Martin Luther King Jr.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014.
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